By: Mohamed Laid Lachgar
AISU's Secretary General

The steel markets have witnessed since the beginning of this century many developments reflected on the situations of these markets. The most characteristic feature of these developments is that they are not restricted to a certain region but they include all regions of the world, though variably.
The year 2003 and the beginning of 2004 have formed a new turning point in these developments represented in a strong rise of prices of the steel products and growing demand for the raw materials associated with a strong growth demand for the steel products; this has made the steel industry live a dynamic state which can be called "dynamism of growth".
In this positive climate which is sometimes mixed with the fear from instability, the Arab Iron and Steel Union will be holding his 2004's steel conference after four years since holding the 6th conference in October 2000. This conference will discuss the developments which have taken place as well as the new projects and the issues connected with the outstanding recovery lived by this industry as well as the problems resulting from the high cost of production inputs and short supplies of a number of raw materials like scrap, iron ore and coke and the high costs of shipping along with how much all these elements will have an impact on the steel industry in the future.
There is more than one impetus for the convention of the 7th International Iron and Steel Conference under a theme reflecting concurrence between the steel industry and achievement of development. The growth of steel is considered the main drive for the economic growth as well as for the growth of many industries basically depending on the existence of an industry for steel. If the 6th International Iron and Steel Conference held four years ago in Egypt under the theme " Technological Challenges Facing the Steel Industry" had concluded to emphasize a significance fact represented in the role of the modern technologies in achieving high-quality products at a low cost and high productivity and had laid stress on innovation and developing new technologies and the necessity that the Arab mills should proceed with the implementation of the development plans to be able to be compatible with the fast change taking place in the world steel market. And if the 6th Conference had considered these attained findings as basic points to be concentrated on to get out of the crisis under which the steel industry had lived at the beginning of this decade, the 7th Conference has come to stress again the importance of these basic points and add to them the fact that the steel industry which had known how to cope with the circumstances of the crisis it had passed through during the first years of the century and got out of it with the least possible losses, will today be more able to face the challenges of the new period at which this industry had moved from the state of recession into the recovery state.
The problem faced by this industry has come to be represented not in the world short demand for steel but - sometimes in the short supply of steel - in particular the shortage of the raw materials and their high prices, making concentration direct not as much to the steel products as to the raw and intermediate materials which constitute the inputs of this industry.
As a result of the accelerating and strong growth of demand for a variety of steel products, the Arab steel industry has realized the importance of having its distinct presence not only in its domestic markets but also in the world market. For this purpose, it has arranged to increase its production capacity and to uphold a policy based on selection of the advanced modern technology in the steel production field and setting up new mills to be able to have its own position not only in terms of the production volume but also in the quality of products. The orientation of this industry to increase the volume of its production of flat products, set up a number of cold-rolling mills, and to proceed with setting up new projects for manufacturing special steel are significant indicators of the new developments seen by this industry.
This development has been especially encouraged by the growing demand in the Arab markets and improvement of the steel prices in addition to the presence of better circumstances for financing due to the improvement of oil prices. However, what this industry has achieved of development still remains below the growth potentialities available in the Arab market which are expressed in terms of the consumption volume. The per capita average consumption in the Arab market is still less than half of the average of world consumption. Besides, the ability of this industry to create extensions for it through setting up many consuming industries is also below the level which makes this industry a drive for a considerable industrial activity which does not stop at a limited number of the present consuming industries constituting the fundamental scope of the activity of this industry.
The scopes of this industry today seem unlimited. All conditions are available for the growth of this industry, but it should be taken into consideration that the trends of the accelerating growth are not restricted to one area but they extend to reach a number of countries in the world.
This will make competition not confined to one market as is the case at present - the market of China is the major market to which interests are directed - but it extends to reach a number of the world markets. This will make the possibilities of winning the markets subject to the capability of producing high-quality products at low costs.